Another potential risk to the U.S. economy, should the federal government default, is higher mortgage rates. Without the debt ceiling hike, mortgage rates could rise to 8.4%, a 22% increase in average household mortgage payments and a slump in real estate sales, according to a report by property firm Zillow. If you borrow $500,000 at … Read more
The Credit Derivatives Determination Committee (CDDC), which oversees the credit default swap (CDS) market, has announced that Credit Suisse Group’s Other Tier 1 Notes (AT1 Notes) have been declared worthless in a credit event. I was asked to judge whether it would be. CDDC on websiteannouncementMarket participants have submitted a letter asking whether Credit Suisse’s … Read more
The meeting of finance ministers and central bank governors of the seven major countries (G7) will open in Niigata City on the evening of the 11th for three days. Regarding the global economy, which is the focus of the first day, we will discuss the impact of financial instability originating in the United States and … Read more
New fears over a recession-inducing credit crunch have led U.S. bond market bulls to speculate that the Fed will make the sharpest policy shift in nearly 40 years. floated for a while. Just minutes after the Federal Open Market Committee’s (FOMC) rate hike decision on Wednesday, traders increased speculation that a rate cut was imminent, … Read more
U.S. job openings fell more than expected in March, while layoffs rose sharply, suggesting a softening in labor demand. Key Point U.S. job openings fell to 9.59 million in March Lowest level in almost two years The median economist estimate is 9,736,000. The previous month was revised upward to 9,974,000 (preliminary figure of 9,931,000). Upper … Read more
Federal Reserve Vice Chairman Barr has called for an overhaul of how the Fed oversees U.S. financial institutions after the failure of Silicon Valley Bank (SVB). Mr. Barr attributed the bankruptcy to poor risk management and a lack of oversight by financial regulators. Vice Chairman Barr was announced on the 28threportIn a letter attached to … Read more
State Street and Charles Schwab have recently experienced a significant drop in deposits. The decrease in assets has been attributed to a variety of external factors, including the COVID-19 pandemic and current economic uncertainty. As two of the industry’s largest custodians, these developments raise important questions about the state of the financial market and the … Read more
The Chinese AI stocks have experienced a significant drop, following the call by Beijing to rein in bubble risks in the tech sector. The crackdown on financial risks has alarmed investors, leading to a sell-off in the markets. As China tightens its grip on internet companies, concerns of overvaluation and regulatory uncertainty are weighing heavily … Read more
Despite the European Union (EU) enacting regulations to curb deforestation, civil groups have raised concerns about their ineffectiveness in reducing the rate at which forests are being lost. These groups contend that the regulations lack enforcement measures and fail to address the root causes driving deforestation in EU trading partner countries. This article explores the … Read more
Another challenge looms for monetary authorities trying to keep inflation under control. Surprise production cuts decided by “OPEC Plus”, which consists of the Petroleum Exporting Organization (OPEC) and major oil-producing countries that are not members. Crude oil prices are on the rise again, and the financial authorities are likely to be forced to make a … Read more